IDT (NYSE:IDT) Releases Earnings Results, Beats Expectations By $0.05 EPS

IDT (NYSE:IDT) released its quarterly earnings results on Wednesday. The utilities provider reported $0.94 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.05, FiscalAI reports. IDT had a net margin of 6.41% and a return on equity of 25.07%. The business had revenue of $315.71 million for the quarter, compared to analysts’ expectations of $308.00 million.

Here are the key takeaways from IDT’s conference call:

• IDT reported a solid quarter with consolidated revenue up 5% to $315.7 million, gross profit up 9% to $122.5 million, and record gross margin of 38.8%. Adjusted EBITDA rose 13% to $37.5 million, and management raised full-year FY2026 Adjusted EBITDA guidance to $150 million-$152 million.
• NRS continued strong momentum, with recurring revenue up 22% year over year and POS terminals topping 39,000 active units. Management said merchant services and SaaS fees are driving growth, while the business posted a Rule of 40 score of 50.
• net2phone showed improving profitability, with subscription revenue up 12%, total revenue up 11%, and operating income up 76%. The company highlighted traction in AI offerings, including a no-code integration layer, and said these products could become accretive growth drivers in fiscal 2027.
• BOSS Money / digital remittance accelerated, with digital transactions up 20% and digital send volume up 40% as the company gained share following a new federal remittance tax. Management also said May was off to a record start and that the digital channel carries materially higher margins than retail.
• IDT ended the quarter with $251 million in cash and cash equivalents, declared a $0.07 quarterly dividend, and repurchased about 84,000 shares for $4 million. Management reiterated it will keep returning cash while continuing to invest in growth and pursue selective tuck-in acquisitions like OnCore Digital.

IDT Stock Up 2.7%

Shares of IDT stock opened at $55.49 on Friday. The firm has a market capitalization of $1.39 billion, a P/E ratio of 16.97 and a beta of 0.68. The company has a 50 day moving average price of $51.61 and a 200 day moving average price of $50.53. IDT has a 52 week low of $45.72 and a 52 week high of $71.12.

IDT Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Tuesday, June 9th will be given a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Tuesday, June 9th. IDT’s dividend payout ratio (DPR) is presently 8.59%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on IDT shares. Weiss Ratings restated a “hold (c+)” rating on shares of IDT in a report on Friday, March 27th. Wall Street Zen cut shares of IDT from a “strong-buy” rating to a “buy” rating in a report on Sunday, May 3rd. One equities research analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company has a consensus rating of “Hold”.

Insider Activity at IDT

In related news, EVP Menachem Ash sold 20,000 shares of the stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $51.00, for a total value of $1,020,000.00. Following the completion of the transaction, the executive vice president directly owned 32,243 shares of the company’s stock, valued at $1,644,393. This trade represents a 38.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Marcelo Fischer sold 5,000 shares of the stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $50.50, for a total transaction of $252,500.00. Following the completion of the transaction, the chief financial officer directly owned 56,147 shares of the company’s stock, valued at $2,835,423.50. The trade was a 8.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 25.41% of the company’s stock.

Hedge Funds Weigh In On IDT

Several hedge funds and other institutional investors have recently modified their holdings of IDT. Public Employees Retirement System of Ohio purchased a new position in shares of IDT in the 3rd quarter valued at approximately $96,000. Gabelli Funds LLC purchased a new position in IDT during the 2nd quarter worth approximately $239,000. State of Tennessee Department of Treasury purchased a new position in IDT during the 4th quarter worth approximately $268,000. Ameriprise Financial Inc. purchased a new position in IDT during the 3rd quarter worth approximately $399,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in IDT by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,156 shares of the utilities provider’s stock worth $470,000 after buying an additional 381 shares during the last quarter. 59.34% of the stock is owned by hedge funds and other institutional investors.

Key IDT News

Here are the key news stories impacting IDT this week:

• Positive Sentiment: IDT reported Q3 fiscal 2026 EPS of $0.94 versus $0.89 expected, on revenue of $315.7 million versus $308.0 million expected, helping confirm that the business is outperforming Wall Street estimates. Article Title
• Positive Sentiment: The company posted record quarterly gross profit of $122.5 million and improved gross margin to 38.8%, signaling stronger operating efficiency. Article Title
• Positive Sentiment: Management raised FY 2026 Adjusted EBITDA guidance to $150 million-$152 million from $147 million-$149 million, reinforcing expectations for continued earnings growth. Article Title
• Positive Sentiment: Growth segments continued to outperform, with operating income up 33% at National Retail Solutions, 29% at Fintech, and 76% at net2phone, showing that IDT’s recurring-revenue businesses are driving the upside. Article Title
• Positive Sentiment: The board declared a quarterly dividend of $0.07 per share, which supports the stock’s income appeal for shareholders. Article Title
• Neutral Sentiment: Analyst/transcript coverage highlighted IDT as a small-cap with recurring revenue and a strong balance sheet, which is supportive but not a direct new catalyst. Article Title

About IDT

IDT Corporation, founded in 1990 and headquartered in Newark, New Jersey, is a diversified global provider of telecommunications and payment services. The company operates through its primary communications arm, IDT Telecom, and a digital solutions segment that encompasses cross-border money transfers and related fintech offerings. Since its inception, IDT has built an international network infrastructure to support voice and data transmission across more than 200 countries and territories.

Through IDT Telecom, the company offers a suite of voice communication products, including prepaid phone cards, VoIP services, SIP trunking and operator-assisted calling.